TAP E03-026

Schedule C Taxpayer Compliance

Statement of Issue:

Complexity of tax laws, lack of knowledge, and confusion over filing requirements contribute to non-filing among Schedule C self-employed taxpayers.

Proposal:

The Schedule C Non-Filer Committee presented the following four proposals to encourage Schedule C taxpayer compliance:

1. Recommended including a FYI box on the Form W-9, Application for Individual Taxpayer Identification Number.
2. Recommended a "Benefits of Filing" message be an integral component of the Service's Nonfiler communication strategy.
3. Notice Response Study proposal to be included in the Taxpayer Education and Communication outreach.
4. "Awareness of IRS" curriculum.

Response Notes:

FYI box on Form W-9 recommendation not accepted.

"Benefits of Filing" Message recommendation accepted and news release schedule for April 30, 2004.

Notice Response Study recommendation scheduled for implementation September 2004.
"Awareness of IRS" curriculum recommendation not accepted since similar curricula are already under development.